Can I trust a finfluencer?

The question on everyone’s lips right now – can I trust financial influencers (aka finfluencers)? The short answer is no.

Luckily they are now officially being cracked down upon by the Australian Securities and Investments Commission (ASIC) with one-million-dollar fines or up to five years in jail being introduced to stop finfluencers in their path. Read the full story.

Basically, if someone does not have an AFS license to provide personal or general financial advice – they shouldn’t be. And personal advice should only be given as a one-on-one basis, taking into consideration the individuals or families situation, and providing relevant advice accordingly.

What is a finfluencer?

A finfluencer is a financial influencer who creates content that helps break down complicated financial concepts so that a more general audience can understand it better.

They allow financial information to be much more accessible and this is all done via social media networks, affiliations, and advertising.

Their confidence coupled with their good looks, energy and social media knowledge has proven to be a successful method to dispensing financial advice and some are capturing massive audiences and making a mint doing it.

There is both positive and negative consequences to financial influencers yielding their knowledge out to the masses.

Urban Dictionary has a great definition.

“On Tik Tok, the hashtag #FinTok — used by finfluencers like Queenie Tan — has attracted more than 400 million views, while #stocktock has 1.4 billion, #crypto4.38 billion, and #cryptocurrency 1.68 billion views.”

ABC News

The negative side of financial influencers

Firstly, you must not believe everything you hear on social media and should always double check credentials and do the research with credible sources.

If you follow a financial influencer that does not have any disclosures or disclaimers, encourages users to buy specific assets and implies that an investment would guarantee a profit, then you should be weary.

There’s been some finfluencers that have made sensational claims about their advice or have promised huge returns by even pushing dud products.

Taking in unsolicited advice from a financial influencer could cause a massive amount of financial damage to you or your friend/family connections if that advise isn’t suitable to your particular situation.

The positive side of financial influencers

For some, they have never been exposed to or educated about financial wellness and money management strategies before, so this has now created opportunities to learn and become more financially literate.  

With the help of the internet and social media, it turns out that you don’t have to be super rich to get financial advice and you can learn a lot from what other people have experienced and are currently doing with their money.

There is also a new movement of empowering woman. There are many women out there doing blogs, podcasts and creating social media accounts that inspire other woman to take back their financial freedom. They are leading the way for more woman to be educated about money and take control of their finances.

How do we really know if someone is qualified to give advice about money?

Many finfluencers appear quite credible and knowledgeable so it’s easy to believe what they are promoting.

The confusing part is, some of those financial influencers out there are also qualified financial advisors but technically they can’t provide you with any personal financial advice unless they do their due diligence first.

A financial influencer must always state that their content is general in nature and is not personalised advice that people must act on. It is for educational purposes only.

Before they can start to provide advice, the financial advisor and client must have a personal discussion about all aspects of their life that could contribute to their financial situation and determine their financial goals that are most relevant to the individual.

Most of the good financial advisors on Instagram, Facebook, TikTok and other platforms will always add their exclaimer about how the information they share should not be acted upon until consulting privately with a professional directly. This is a serious note that shouldn’t be overlooked.

Here’s 3 tips to assess if their advice has value.

At the end of the day, head to a qualified financial advisor for credible advice. Like us!

Superannuation advice is financial advice

At Super Heroes, we are definitely not finfluencers and are here to provide you with advice and services mainly relating to your superannuation but can advise you on all aspects of your finances.

“Our superpower is helping our clients invest their super directly with investment fund managers to save on fees and enjoy better returns, and over time potentially creating a better life in retirement.”

We are not a company that preaches how to make financial decisions, rather, we inform and advise on the best ways to manage your money to help you achieve your goals.

However, before giving you any personal financial advice, we take into consideration your lifestyle and financial goals, family/marital situation, employment status and other significant things in your life that may affect our advice to you.

Our conversations with you are private and confidential, where we follow all the due diligence to ensure you are receiving legitimate services and advice.

Get in touch with us

If you would like to review your superannuation or some other area of your financial situation and have a private discussion with one of our qualified and experienced team members, please get in touch via the form below.

Of course, we do have social media pages Facebook and LinkedIn that you can follow for general info, news, inspiration and would love for you to join our discussions on all things super!

We haven’t hit the big time on TikTok…yet.

Stay tuned for video content, webinars and live streams to teach you more about what we offer, our processes and what you can get out of our services.